Developer Extell's International Gem Tower has been slow to start shining in the Diamond District: despite promises to have the first phase of the SOM-designed building done by the end of last year, the steel's gone no higher than than the foundation and one slab at ground level while Extell waits on a construction loan. But now the city, the state, and the federal government are dangling cash in front of Extell to get the developer to speed it up, the Times reports. The city's offering Extell $49.6 million in tax breaks, the state is set to approve up to $100 million in loans for the tower's future tenants, and the federal government has already declared the building a foreign trade zone, which means no custom duties for tenants. One of the state loans could cover half the cost of a condo for a merchant in the building. So far, less than one-fifth of the building is in contract. But we all know diamonds take forever, right?
· Gem Tower Tenants Could Receive Low-Interest Loans [NYT]
· International Gem Tower coverage [Curbed]